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Use the information for the question(s) below. As an oil refiner, you are able to produce $76 worth of unleaded gasoline from one barrel of
Use the information for the question(s) below. As an oil refiner, you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce \$77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude. 23) Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for 10,000 Bbls of West Texas Intermediate (WTI) crude oil. Assuming you currently have 10,000Bb ls of WTI crude, the added benefit (cost) to you if you take the trade is closest to: A) ($1,400) B) $1,400 C) ($3,908) D) $3,908 24) Assuming you currently have 10,000Bb ls of WTI crude, the added benefit (cost) to you if you were to sell the 10,000 Bbls of WTI crude and use the proceeds to purchase and refine ANS crude is closest to: A) ($1,400) B) $1,400 C) ($3,908) D) $3,908 25) If the risk-free rate of interest (rf) is 6%, then you should be indifferent between receiving $250 in one year or A) $235.85 today. B) $250.00 today. C) $265.00 today. D) None of the above
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